As active mobile home investors, we may take for granted the mobility and move-ability of nearby mobile homes. Needing only an internet connection and a cell phone, any mobile home owner with a few thousand disposable dollars can contact a local mobile home transportation company to have their subject mobile home(s) moved. They can then set up in a new location with all utilities connected. With the help of a reputable transportation company, the process is very streamlined, insured, and headache-free.
Perhaps the most valuable five words in the above paragraph are “with a few thousand disposable dollars.” That is because many mobile home owners inside preexisting mobile home parks do not have this type of disposable savings to spend. Additionally, some lien holders may make it difficult to have a home moved before the underlying debt is paid in full. For these mobile home owners, the option to move their mobile home is virtually impossible. At the very least, it is a struggle to track down and borrow the money.
Of course, a number of manufactured home owner-occupants across the country would have no problem moving their mobile homes if needed. These owners should take solace in knowing they are capable and prepared to move their home if needed.
What Does This Mean for People in the Marketplace?
Benefits for Sellers
In the case of mobile home owners, there may be little benefit. This includes those who absolutely must sell by a closely approaching date or risk losing their homes. In a perfect world, this owner would have money in the bank and/or time to wait to sell their mobile home. He or she would be current on the monthly park lot rent, and the community would not be evicting them. In a perfect world, any mobile home owner would have the funds to move if need be.
Related: The 6 Types of Mobile Home Buyers Investors Compete Against
Why Homeowners/Sellers Typically Need to Move Their Mobile Home
- The park is evicting the homeowner and the home. Disclaimer: When an eviction takes place in a mobile home park, the park will most likely demand the problem resident leave. It will also require the resident takes along any homes they own.
- The subject mobile home park is closing.
- The home has an unstable foundation.
- Flooding has occurred.
- Zoning has changed.
- Due to an upgrade to a newer mobile home, the older home needs to be removed (if attached to land owned by home owner).
Benefits for Buyers
Assuming a buyer can rectify the situation with the subject mobile home park (pay back the amount owed) or simply pay for the home to be moved to a new location, then the benefit is obvious. A motivated seller equals a discounted purchase price.
Benefits for Investors
Same as above.
Benefits to the Mobile Home Park
Same as above. Additionally, all the mobile home park must do is sit and wait. The park either collects its past due monies or takes legal possession of the manufactured home when the homeowners eventually abandon it.
In conclusion, this article does nothing to service a need for helping the exact cash-strapped sellers/homeowners this article discusses. Instead, this article is merely a public service announcement of sorts. It alerts homeowners to start saving in the event something unforeseen arises. Additionally, if you are a purchaser or investor, remember to strive for win-win deals between all parties.
Investors: Have you come across this situation in your mobile home investing?
Let me know your experiences with a comment!